Dear BP, please help!
I am a brand new investor, and just
closed on my first duplex today in Wisconsin, which has an existing upper tenant. The tenant had a verbal agreement with the previous landlord, of $500 per month for rent and a $200 security deposit WITHOUT utilities.
The current market value is between $800 and $850 without utilities.
I met with her and addressed her concerns maintenance wise, and assured her that those will be taken care of within a week by a general contractor.
I told her that I would work with her and bump her up to $750 per month, which INCLUDES water.
This still puts her at $100-$150 under market rent.
I sent her a recap email with what we talked about , and she said she won’t be renewing her lease, and will be moving out by 05/31, but she will pay at the $500 rate. She specifically stated “ i do not accept the new rate”.
What do I do now ?
My next steps to follow are
1. Send certified letter and email saying that she has 24 hours to sign a new “month to month” lease agreement, which will be at the new rate of $750, which will be charged until the day she vacates
2. If she doesn’t agree to sign the “Month to month” lease at the new rate, then send her a notice to vacate the premises by end of April (she had paid rent until then) , otherwise I will start the eviction process by May 1st
What do you all think of this process ?
Is there anything you’d do different?
I appreciate some constructive criticism
Thank you.
